KUALA LUMPUR: Four companies under the Minister of Finance (Incorporated) (MOF Inc) posted losses for the financial year 2023.
The four companies reporting losses were Prasarana Sdn Bhd, Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), Keretapi Tanah Melayu Berhad (KTMB), and Jambatan Kedua Sdn Bhd (JKSB).
The Finance Ministry said these companies mainly implement public infrastructure projects, particularly in rail transport and bridge infrastructure.
“These losses were incurred to support public services, such as maintaining affordable fare rates,” it said in a parliamentary written reply dated August 25.
The ministry said Government-Linked Companies (GLCs) under MOF Inc are not profit-oriented but exist to fulfil specific government mandates.
This includes providing services and meeting social obligations, such as public transport, water supply, electricity, sewerage, and promoting economic development by supporting new industries requiring large initial capital investments.
These companies also promoted technological advancement through research and development (R&D), attract local and foreign investors to high-value sectors like artificial intelligence, nanotechnology, and information technology, fill market gaps not ventured into by the private sector, and maintain government interests in strategic sectors.
Meanwhile, Bank Pembangunan Malaysia Bhd (BPMB), Pengurusan Aset Air Bhd (PAAB), Bank Pertanian Malaysia Bhd (Agrobank), IJN Holdings Sdn Bhd, and SIRIM Bhd were among the profitable MOF Inc companies.
“As the majority shareholder, MOF Inc continuously strives to strengthen oversight of these companies’ financial and governance performance to ensure their operations are aligned with their founding objectives and government mandates,” it said.
Measures taken by MOF Inc include requiring annual business plan presentations, setting Key Performance Indicators (KPIs), and reporting quarterly on KPI performance and audit reports.
“MOF Inc also holds Corporate Improvement Programme (CIP) meetings for companies failing to achieve at least 80% of their KPI targets in the current year. These meetings aim to identify issues and discuss structural improvements,” it said.
Companies failing to meet KPI targets must submit detailed explanations and an action plan outlining steps to improve performance and financial position.
The ministry was responding to Lim Lip Eng (PH–Kepong), who asked about the 20 GLCs reporting the highest losses and what measures the government is taking to reduce losses.
